GENCO-II to get gas from SARA, SURI fields

ISLAMABAD: Economic Coordination Committee (ECC) of the Cabinet on Wednesday considered and approved allocation of gas from SARA and SURI gas fields in district Ghotki Sindh to GENCO-II at mutually agreed terms and conditions.Federal Minister for Finance, Revenue, Statistics, Economic Affairs and Privatisation Senator Ishaq Dar gave approval to various summaries of different ministries.It is estimated 14-15 billion cubic feet (bcf) gas reserves were lying in the gas field and it requires investment costing around $ 6-8 million.ECC approved a summary for re-allocation of low BTU gas from Bahu gas field to Fauji Kabirawala Power Company Limited (FKPCL). Keeping in view the prevalent electricity crises in the country and higher dispatch order low BTU gas from Bahu Gas Field would be allocated to project for remaining term of its PPA i.e October 29, 2029 to ensure its smooth operation and to avoid conversion of the Project on any expensive alternate liquid fuel, which would be an unaffordable option given the energy mix scenario in the country.The ECC considered and approved a summary of Ministry of Water and Power for issuance of policy guidelines to National Electric and Power Regulatory Authority (NEPRA) to incorporate debt servicing on actual basis in revenue requirements of distribution companies (Discos), which would be adjusted in tariff of Discos on annual basis.The ECC approved the summary of the Ministry of Water and Power for issuance of policy guidelines to NEPRA to rationalise Transmission and distribution (T&D) losses target of 12.82 percent to 15.75 percent on a same anology as done for the tariff for the FY/2012-13. DISCOs claim T&D losses of 17.55 percent for the year 2013-14. The Minister for Water and Power informed the ECC the government in the last one year has improved in recovery and containing line losses up to the extent of 2 percent and would continue to make progress in this regard.The ECC approved the summary of the Revenue Division for transfer of tax exemption given to PSA Gwadar Pte Limited as per ECC decision in case number 13/1/2007 February 1, 2007 to China Overseas Ports Holding Company Limited for the remaining period of the term.ECC approved the summary of Revenue Division for exemption from income tax to profits and gains derived by coal mining projects in Sindh supplying coal to power generation projects only.Pervez Rasheed Minister for Information, Broadcasting and National Heritage, Khawaja Asif Minister for Water and Power, Ahsan Iqbal Minister for Planning and Development, Zahid Hamid Minister for Science and Technology, Abbas Khan Afridi Minister for Textile Industry, Ms Anusha Rehman Minister of State for Information Technology, Muhammad Zubair Chairman Privatisation Commission, federal secretaries and senior officials attended the meeting.